Launching Crispy Natural- Cracking The Product Management Code
Transcript of Launching Crispy Natural- Cracking The Product Management Code
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Launching Krispy Natural
Cracking The Product Management Code
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Candler Enterprises
Pemberton
Pet Care Division
Quick Service
Restaurant
Multinational Beverages
Background Information
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Pemberton
Packaged food bars, cookies and other sweet-baked goods
Softies Cookies
Homestyle muffins and doughnuts
$5 billion in sales
Owns and utilizes a direct store delivery
(DSD) system
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Strategic Priorities for Product Development
Building a collection of attractive, durable brands
Leveraging leading marketing, sales and DSD systems to increase revenue and profits
Building or acquiring capabilities in salty snack categories
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Retail cracker sales an
estimated $6.9 billion
CAGR of 2.2% from 2008-2010
Annual growth
forecasted between 10-
14%
Increase of 6.2% in all brands in 2010
US Cracker Industry
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Top 3 US Cracker
ManufacturersPepperidge
Farm
Kellogg Co.
Kraft Food Inc.
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Cracker Segments General
Saltines
Crackers with
filling
Graham
Crackers
Others
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2009 Krispy Sales Performance
Plan 2009 Actual % to Plan
Krispy Retail $97.5 $50.8 52.1%
Krispy Vend $23.4 $18 76.9%
Total Krispy Single-Serve
$120.9 $68.8 56.9%
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Mintel Study
Standalone flavours were the number 1 criterion to purchase crackers.
53% considered
overall healthfulness
34% ate them as a part of a regular
weekly diet
34% ate them as a part of a
weekly diet
74% consumed
crackers on a regular
basis
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Responding To Market Trends
Kraft Nabisco Wheat Thin Flatbread
Pepperidge Farm
Goldfish
KelloggKeebler
Townhouse
Flatbread
Healthier,
premium-priced
products for
consumers.
Flavour-focused
product lines
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Krispy Single Serve
Krispy Natural
Krispy Natural
vs Krispy Single Serve
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Krispy Natural Product Strategy
Increased package size to multiple servings
Improving taste and introducing new flavours
Targeting health conscious customers
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Krispy Natural Marketing Strategy
Quickly establish Krispy Natural brand
Aggressive plans for pull spending and trade promotions
Heavy advertising and promotion
Employs a Pull strategy
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Krispy Natural Distribution
DSD
•Longer shelf life of crackers
•Low storage capacity of trucks
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Krispy Natural Pricing Strategy
Premium pricing strategy
Retail price on par with competition
Less quantity in Krispy Natural Package
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Sales Objectives
•Nationwide distribution of crackers
•Minimum sales of $500 million
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SStrengths
• World renowned
product development
labs.
• Extensive product mix.
• Owns and controls
DSD.
• Innovates.
WWeaknesses
• Longer shelf life of
crackers.
• Capacity constraints of
DSD for Krispy Natural
products due to truck
limitations.
TThreats
• Frito-lays is entering the
market.
• Growth in the Southeast
is slow.
• Losing market share to
competitors.
OOpportunities
Market research shows
consumer dissatisfaction with
the flavor and taste
experience of the current
brands.
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Interpreting Market Results
Kraft, Kellogg and Pepperidge lost a total of 11% share despite the market demand
18% share in Columbus market as a new entrant
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Competing with
Frito-Lay Encourage health
awareness as main concern
Optimize DSD
system with cost reduction
Launch new
products
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National Rollout
Recommended due to positive response in market test results
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Summary
• Background Information
• Pemberton
• US Cracker Industry
• Krispy Sales Performance
• Responding To Market Trends
• Krispy Natural Marketing Strategy
• SWOT Analysis
• Interpreting Market Results
• Competing with Frito-Lay
• National Rollout
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DISCLAIMERCreated by Swaha Kar, MIT Manipal, during a Marketing Internship under the guidance of Professor Sameer Mathur,
IIM Lucknow.